Up till this point, we have now been finding out the accounting cycle for a service enterprise. In general, the accounting procedures of a service business are the best to understand. A merchandising enterprise, which is a business that buys goods and resells them at a revenue, follows a similar accounting cycle, and makes use of related accounting procedures. However, a merchandising enterprise is slightly extra complex, as it should account for the price of the products that it sells, a price that does not exist for a service enterprise.
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